Kuala Lumpur:Approximately 160,000 taxpayers who registered for e-Invoicing but are now exempted from the requirement can decide whether to continue using the system.

According to BERNAMA News Agency, Deputy Finance Minister Liew Chin Tong stated that these taxpayers are among the 1.1 million micro, small, and medium enterprises (MSMEs) with annual sales of RM3 million or below, who are now exempt from mandatory e-Invoicing. However, 164,435 taxpayers in this category have voluntarily chosen to implement e-Invoicing.

Liew mentioned that these businesses have the option to continue with the system or opt-out, as he addressed a supplementary question in the Dewan Rakyat. The inquiry came from Jimmy Puah Wee Tse (PH-Tebrau), who sought to understand the number of companies exempted from e-Invoicing and the potential impact on national tax revenue.

The government has announced that from September 1, 2026, MSMEs with annual sales below RM3 million will not be required to implement e-Invoicing. Liew highlighted that MSMEs face several challenges, including tax compliance, transitioning to online platforms, and international competition.

He assured that the government is actively working to alleviate bureaucratic pressures and ensure that MSMEs are not overburdened by compliance requirements, especially in the aftermath of the COVID-19 pandemic.

For larger companies, those with annual sales exceeding RM100 million began implementing e-Invoicing on August 1, 2024, affecting 5,578 taxpayers. The initiative was expanded to include companies with sales between RM25 million and RM100 million, involving 14,567 taxpayers; those with sales between RM5 million and RM25 million, involving 51,710 taxpayers; and businesses with sales between RM3 million and RM5 million, involving 25,503 taxpayers.